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Mankind Pharma approved the sale of its subsidiary, Mahananda Spa, to Chalet Hotels at an enterprise value of Rs 530 crore. The company will use the proceeds to reduce debt. Mankind Pharma share price is down 13% this year but gained 13% over the past year.
Mankind Pharma, India’s fourth-largest pharmaceutical company by domestic revenue, has approved the sale of its entire stake in Mahananda Spa to Chalet Hotels. The deal, valued at Rs 530 crore, is part of the company’s strategy to monetise non-core assets and reduce outstanding debt. The transaction is expected to be completed by February 28, 2025.
Mahananda Spa reported a turnover of Rs 74.33 crore in FY24 and had a net worth of Rs 401.35 crore. The sale proceeds will help Mankind Pharma strengthen its balance sheet as it continues to focus on core business expansion.
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Transaction Value: Rs 530 crore enterprise value for Mahananda Spa.
Debt Reduction: Sale proceeds to be utilised for partial debt repayment.
Financials of Mahananda Spa: Turnover of Rs 74.33 crore in FY24, net worth of Rs 401.35 crore.
Expected Closure: The transaction will be completed by February 28, 2025.
Strategic Focus: Mankind Pharma is streamlining operations to focus on core business growth.
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In October 2024, Mankind Pharma completed the acquisition of Bharat Serums and Vaccines (BSV) for Rs 13,768 crore, strengthening its position in women’s health and fertility drugs. This acquisition also expanded its presence in the critical care segment.
The company delivered a strong Q2FY25, driven by demand for chronic medications for diabetes and cardiovascular conditions. However, its domestic formulations business has been under pressure due to slower growth in acute therapies, which contribute two-thirds of its revenue.
Mankind Pharma share price has declined by 13% this year but gained 13% over the past 12 months.
Parameter | Details |
Buyer | Chalet Hotels |
Seller | Mankind Pharma |
Enterprise Value | Rs 530 crore |
FY24 Turnover | Rs 74.33 crore |
Net Worth | Rs 401.35 crore |
Deal Closure Date | February 28, 2025 |
Mankind Pharma’s decision to divest Mahananda Spa aligns with its strategy to optimise financial resources and strengthen its market position. Investors are closely monitoring Mankind Pharma share price amid the company’s ongoing structural shifts.
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